CFPB Announces Discrimination Against Armenian Americans by Citigroup: A Shocking Revelation

New York (AP): The Consumer Financial Protection Bureau (CFPB) made a startling announcement on Wednesday, accusing Citigroup, a global financial services company headquartered in New York, of discriminating against Armenian Americans during credit card application processing.

Citigroup’s Discriminatory Practices: A Closer Look

The CFPB revealed that Citigroup employees had resorted to derogatory language and biased screening practices based on national origin. Internal communications obtained by the CFPB indicated that Armenian American applicants were labeled as ‘bad guys’ or affiliated with organized crime.

Some employees also avoided approving applications with last names ending in ‘yan’ or ‘ian’ and those originating from Glendale, California – a city with a large Armenian-American population.

Settlement and Fines

As part of the settlement, Citigroup agreed to pay a total of $25.9 million in fines and remedies to affected customers. This came following investigations into organized crime rings operating in Southern California, where some Armenian Americans have been charged with identity theft and other financial crimes, including COVID-19 relief fund fraud.

Initial Defense and CFPB’s Findings

Initially, Citigroup defended the actions of a few employees, claiming they were trying to prevent fraud from the ‘well-documented Armenian fraud ring’ in California. However, the CFPB found that these employees had relied on identifiable information that discriminated against Armenian Americans as a whole. This circumvented the bank’s fraud detection protocols and violated anti-discrimination laws.

Citigroup’s Response

Citigroup issued an apology stating, “We sincerely apologize to any applicant who was unfairly evaluated by the small number of employees involved in this matter. Following an internal investigation, we have taken appropriate actions against those directly involved and implemented measures to prevent any recurrence of this conduct.”

Impacted Individuals and the Substantial Fine

The CFPB’s investigation identified ‘hundreds of individuals’ affected by Citigroup’s discriminatory practices, leading to a substantial fine against the bank. This impacted Citigroup’s co-brand credit card partnerships with major retailers like Home Depot and Best Buy.

Citigroup’s Ongoing Issues with Regulators

Citigroup, led by CEO Jane Fraser, has been trying to streamline its business and address ongoing concerns from regulators regarding its complex risk-management strategy. Despite efforts to simplify the company’s operations, regulators continue to express concerns about Citigroup’s management of its business. Previous fines and citations from the CFPB and the Federal Reserve add to these worries.

CFPB Director Rohit Chopra’s Statement

At a press conference, Rohit Chopra, CFPB Director, expressed his concerns, stating, “Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination.” Chopra added, “I am concerned about Citigroup’s longstanding problems when it comes to managing the many parts of its sprawling business.”